Considering FBA After Many Years

We are an East Coast seller and think these long FBM delivery estimates are really killing us to the point we may have to go back to some FBA. Only shipping out of 1 coastal state limits how many orders we can get in customer’s hands within a few days. Even if orders get to the customer under the delivery estimate we get a decent amount of “Order didn’t arrive on time” returns. Our products can be considered seasonal, event based, one off purchases which aren’t a necessity. They may be more time-sensitive than most Amazon purchases but think Amazon buyers Prime or not want stuff in 2-3 days. Our competitors are nearly all 100% FBA.

Has anyone jumped back in to FBA for these reasons? Your thoughts.

I’ll never understand why anyone without very heavy or really specialty products / collectibles wouldn’t be using FBA.

Seems like you have past experience with FBA so why did you leave?

If you were having very specific issues with FBA, it’s unlikely they have improved since you exited.

We could never compete without FBA. That’s just the way our category is and yours seems like it’s that way too considering your statement.

If you are getting back in, you need to get a grasp on the placement fees and how to avoid them. If you can avoid them (5 split shipments per shipment), your margin should improve over where it was when you left.

Tax collection, reporting and Nexus had us totally freaked out back in the day.

Well… Amazon is doing all of that tax work now…

Give FBA another shot. Something tells me you’ll be happy and wealthier and dealing with a lot less BS…

There will be new BS to deal with but there’s always a tradeoff.

Buyers want their stuff now… FBA delivers that.

I know you shouldn’t get tax advise on the internet but… Does anyone know if you trigger tax nexus on Amazon because of the number of orders, sales volume or warehouse location do you also have to begin collecting sales tax on your own site for that state?

With the marketplace laws in place now … taxes and nexus are on Amazon. Amazon collects and pays the states. As far as reporting sales tax, that varies a little depending on the state. This we would defer to your tax advisor.

If you have your own website, then that is when you would have to worry about nexus and sales tax. Again, we would defer to your tax advisor.